Guwahati: The Punjab government decided to reinstate the Old Pension Scheme on Friday in response to several requests from government workers.
The state cabinet took the decision, Chief Minister Bhagwant Mann tweeted.
“Today, in the Punjab cabinet meeting, a historic decision has been taken for its employees…your government is going to restore the old pension scheme…the cabinet has given in-principle approval to this decision…We stand by our employees…promised..delivered…
What we say, we do,” Mann tweeted.
Earlier, Rajasthan, Chhattisgarh and Jharkhand too went back to the Old Pension Scheme and quashed the new pension scheme.
A government employee is entitled to a monthly pension after retirement under the previous pension plan. The average monthly pension equals half of the recipient’s most recent pay.
Employees contribute a percentage of their salaries to the pension fund under the new pension plan. They are qualified for a one-time lump sum payment from their superannuation as a result.
For the record, the previous pension plan was terminated in December 2003, and the new plan took effect on April 1 of the following year.